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Vonage I think the statement "the risk of service interruptions" is being misinterpreted. This

I think the statement "the risk of service interruptions" is being misinterpreted.

This is a statement on a 10-K. On a 10-K disclosure, a company tries to assess all possible risks that may affect their performance. It's a way of protecting yourself from being sued by shareholders - shareholders can't claim that the management team was silent about the risk of the company CEO being eaten by a mutant space whelk if, in fact, that same risk is in their 10-K.

Service interruptions are a risk. Those service interruptions could potentially come from a finding in the court, or could come from other technical means, such as Verizon interfering with connections to Vonage subscribers, or simply because Vonage will need to do cost-cutting and there may be some interruptions as they consolidate servers and become more lean. Or they may not have any service interruptions at all (or, I should say, no more than normal).

Yes, there has been a spate of outages, and it is worrying - but Vonage has had flurries of outages before. If you are affected directly, by all means - do what you need to do. Voip has more technical bits than landline, and by nature landline is going to tend to be more reliable (of course, tell that to my wife's 92 year old grandfather who has been waiting over a week for Verizon to come out and fix his landline after it was damaged in the last storm).

If they have service interruptions, it could cut into their revenues, which could cause them to be unable to repay their debts, which could eventually lead to delisting. They are not citing an INCREASED risk of outages, only that outages, if they occur, could eventually lead to bigger problems. This is not "news" - if Vonage went down for three weeks a year ago, they'd still be in deep horse puckey with their customer base, and many would evacuate.

Of course, a "panic evacuation" like some people will do is also a risk. If enough customers decide to leave, then revenues drop, etc etc. It's sorta like a "bank run" in the early 20th century. But I doubt the evacuation will reach that level of critical mass...

Vonage is on pins-and-needles until next week. At that point, they find out if they are allowed to continue signing up new customers. If they lose that battle, then (please pardon my overemphasis of this fact): Your. Phone. Will. Still. Work.

If they lose the right to sign up new customers, then (as their own lawyers have said), they are cut off from their oxygen supply. That does not mean they are immediately dead. There are a number of things that can happen, but during that period... Your. Phone. Will. Still. Work.

Their logical step, when their cash reserves run dry or get low, will be to declare Chapter 11. Even with no new customers coming in, they are still making money (before advertising expense - and with no new customers allowed, they'd stop bleeding money on advertising). During Chapter 11... Your. Phone. Will. Still. Work.

During Chapter 11, they will undergo a restructure. Part of that process may include being bought out by another company, and the new company will be interested in a 2+ million customer base. Either that, or they will find a way to emerge. Or they will go to Chapter 7 (receivership), at which point someone will buy out their remaining assets, including their customer base.

UNTIL and UNLESS someone buys out Vonage and decides to abandon a profitable 2+ million-strong customer base... Your. Phone. Will. Still. Work.

And, at any time during this proceeding, you will be able to port your number to the new carrier of your choice.

So, no need to panic and drop your Vonage line now. It will be weeks, probably months, and possibly years before your existing Vonage line stops working. If it does.

Vonage is making money off your business with them. Anyone who buys them out would be foolish in the extreme to throw away that. We, my Vonage-using friends, are a giant mooing Cash Cow. Cash Cows are milked, not slaughtered. ;)

Read The Full Thread:

It''s on the wall....

The opponent has a vast, maybe never-ending, amount of resources to throw behind
Time to face facts folks, Vonage is done for at some point in the next 6 months or
Vonage is dead...
case like this is not enough to put out a great company like vonage.
May be not directly, but we've seen the effect on the stock price, CEO leaving,
Just proves how threatened they are with Vonage I guess. But it's not over yet nice
With the CEO stepping down, there are just some people who cant stand in the middle
I don't know. The opponent has a vast, maybe never-ending, amount of resources
bummer , I'm sticking in until the end. Unless my voip service becomes unstable.
I don't think the CEO leaving was entirely Snyder's decision... Sounds like the

NateHoy posted "I think the statement "the risk of service interruptions" is being misinterpreted. This" on 04/19/2007

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†AK and HI residents pay $29.95 shipping. ††Limited time offer. Valid for residents of the United States (&DC), 18 years or older, who open new accounts. Offer good while supplies last and only on new account activations. One kit per account/household. Offer cannot be combined with any other discounts, promotions or plans and is not applicable to past purchases. Good while supplies last. Allow up to 2 weeks for shipping. Other restrictions may apply.

1Unlimited calling and other services for all residential plans are based on normal residential, personal, non-commercial use. A combination of factors is used to determine abnormal use, including but not limited to: the number of unique numbers called, calls forwarded, minutes used and other factors. Subject to our Reasonable Use Policy and Terms of Service.

2Shipping and activation fees waived with 1-year agreement. An Early Termination Fee (with periodic pro-rated reductions) applies if service is terminated before the end of the first 12 months. Additional restrictions may apply. See Terms of Service for details.

HIGH SPEED INTERNET REQUIRED. †VALID FOR NEW LINES ONLY. RATES EXCLUDE INTERNET SERVICE, SURCHARGES, FEES AND TAXES. DEVICE MAY BE REFURBISHED. If you subscribe to plans with monthly minutes allotments, all call minutes placed from both from your home and registered ExtensionsTM phones will count toward your monthly minutes allotment. ExtensionsTM calls made from mobiles use airtime and may incur surcharges, depending on your mobile plan. Alarms, TTY and other systems may not be compatible. Vonage 911 service operates differently than traditional 911. See for details.

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